TRADE PACT.

Auckland Star, Volume LXIX, Issue 206, 1 September 1938, Page 13

TRADE PACT.

CANADA AND N.Z. EXTENSION ARRANGED. MINISTER'S ANNOUNCEMENT. 'By Telegraph.—Parliamentary Reporter.) WELLINGTON, this day. Following negotiations with the Canadian Government, the Minister of Marketing, the Hon. W. Xa?h. announced to-day that the trade agreement between Xew Zealand and Canada had been extended for another 12 months. The extension expires on September 30, 103!). The Minister said that the Canadian Government had agreed to abolish the exchange dumping duty on butter, which maaiu that shipments from Xew Zealand in future would be admitted on the payment of a duty of 5 cents a pound. The British preferential tariff rate was 8 cents a pound, less a discount of 10 per cent and a general tariff of 14 cents a pound. Both countries had reached an understanding under which shipments would be limited if necessary.

New Zealand, added the Minister, would co-operate with Canada in the quantity of shipments of butler so as not to prejudice unduly the interests of the Canadian producers. Mr. Xash also said that the balance of trade in favour of Canada had increased from £879.000 in 1932 to £2 r 901,000 in 1937. At the same time exports from Xew Zealand to Canada had increased from £229,000 to £1,663, 000 in the same period. The steady increase in New Zealand's exports to Canada was described by the Minister as being the most gratifying feature of the agreement. Principal items in the increase were wool, hides, calfskins and sausage casings, while this year a considerable quantity of butter had been sent to Canada. The Minister added that, having regard to the nature of the commodities exchanged and required by each country, balanced trade was impracticable.